Dairy Alternatives Market - Key Research Findings

Veganism is fuelling the global demand for dairy alternatives. According to a survey hosted by Vegan Life Magazine and the Vegan Society of almost a Million people across Europe

At least 542,000 people in Britain are following a vegan diet, which is an increase of over 300% in the last decade, with 42% of the people aged between 15 and 34.

Also, according to the research by FMI, in the U.S., the number of consumers recognized as vegan raised from 1% to 6% between 2014 and 2017. Servicing the demand for choicer and tastier vegan products is an opportunity for growth.

North America and Europe are expected to gain significant market share during the forecast period

Adoption of veganism is increasing, more and more companies are emerging, and existing companies are launching new dairy alternatives to keep up with the on-going trend.

By comparison, the market for dairy alternatives in Asia-Pacific is a study in contrasts. It is the largest region for dairy alternatives consumption in the world by value, but has the lowest per-capita spending on dairy, in part because many rural areas are just developing modern infrastructure to make dairy alternatives more accessible.

Growth in these regions is being driven by modern trade development, changing consumer habits, and dynamic product development, which makes them ripe for growth potential in the dairy alternatives segment.

Soy is expected to remain the most preferred source of dairy alternatives

The increasing number of lactose intolerant individuals and health-conscious population are driving the demand for soy milk.
Increasing concerns over the adverse effects of natural milk and inclination towards non-dairy milk have been witnessed. Soybean growers have an excellent opportunity to capitalize on.

Top 3 Factors Shaping the Dairy Alternatives Market

Change in Perception over Dairy Alternatives

With the growing awareness about health benefits of plant-based substitutes to dairy products is one of the leading factors to trigger consumer inclination towards dairy alternatives. Rapidly growing population of vegan consumers is expected to bolster developments in the dairy alternatives market in the coming years.

Furthermore, a mounting number of ongoing studies and research on nutritional profiles of plant-based products are stressing on the health benefits of consuming dairy alternatives. This is changing consumers’ perception towards plant-based food products, and subsequently, boosting growth of the dairy alternatives market.

Growing Plant-based Food and Beverages Industry

The plant-based food industry in the U.S became of US$ 3 billion industry in 2018 with an increase in sales by more than 8% during the same year. Dairy alternatives grew an impressive 61% in terms of sales in the last year reaching a value of more than US$ 15 Bn.

In the upcoming years, plant-based dairy alternatives are anticipated to represent more than 40% of the combined total of dairy alternatives. Thereby, to capitalize on increasing sales potential, stakeholders in the dairy alternatives market are likely to adopt strategies to introduce innovative, plant-based dairy alternatives in the upcoming years.

Manufacturers Modify Business Strategies to Maintain a Competitive Edge

Traction in the production of animal-free proteins has been propelling growth of the dairy alternatives market, which is further leading to intensifying the competitive landscape of the market. A burgeoning number of new entrants in the dairy alternatives market is forcing leading market players to modify their salient business strategies.

Observing the flourishing demand for natural products and the rapid progression of new ventures, a majority of large-cap consumer goods companies are aiming to advance by structuring their natural food divisions. Acquiring smaller brands surviving in the market has also been observed to be an important part of most top-tiered companies’ preeminent business strategies.

Dairy Alternatives Market Structure Analysis

The strong growth rate and better profit opportunities have attracted food manufacturers, investors, and start-ups alike, which has provided a suitable space for capital investment opportunities.

The number of foodservice providers adopting dairy alternatives for their end products is increasing at a rapid pace.

With a CAGR of dairy alternatives market expected to grow at 7.7 % over the next five years, the market will be worth US$25 Bn by 2024.

According to Future Market Insights’ recent report on dairy alternatives market, demand for dairy alternatives is witnessing an upsurge as individuals are progressively going for dairy-free products, mostly when it comes to fluid milk used in various foods like cereal.

Global sales for dairy alternatives have witnessed roaring growth over the last few years. Price, flavor, and nutrition tend to favor dairy, however changing customer perception for lifestyle choices, health, and perceived sustainability are increasingly attracting more individuals to choose dairy alternatives or dairy-free products. The business for the last few years has favored players who invested in dairy alternatives across the supply chain – from buying brands to expanding their own product offerings.

The scope of the report on the dairy alternatives market includes sources such as soy milk, almond milk, and more that are incorporated in various end products such as cheese, yogurts, ice creams, and more. Dairy alternatives are utilized among both industrial and household food applications. The report covers a historical analysis of the dairy alternatives market from 2014 to 2018 and provides forecasts from 2019 to 2029 in terms of volume in metric tons and revenue in US$.

Dairy Alternatives Market: Introduction

This report on the dairy alternatives market has been broken down into different chapters to enhance clarity and provide context. A brief executive summary at the beginning of the report consists of some of the key findings of the study on the dairy alternatives market, as well as market estimates and growth rates for important segments.

The following chapter presents the definitions and scope of the study, as well as coverage in terms of the way the dairy alternatives market is structured. Subsequently, the chapter on market background presents the evolution of dairy alternatives, relevant economic indicators such as GDP and per capita food consumption. It also includes an assessment of the supply chain, policy developments and regulatory scenario, dynamics impacting the dairy alternatives market, as well as an explanation of the factors considered important to develop forecasts and estimates.

The report on the dairy alternatives market also includes a chapter on pricing analysis, highlighting price point variations between different regions and products, including pricing forecasts. The following chapters dive deep into the global dairy alternatives market, covering detailed information based on source, nature, end use, and sales channel.

The next set of chapters provide region-wise analysis and forecasts of the dairy alternatives market, covering vital aspects of the market in North America, Latin America, Europe, China, Asia Pacific Excluding China, and the Middle East and Africa.

Dairy Alternatives Market: Competitive Landscape

A dashboard view of some of the key companies operating in the dairy alternatives market in terms of their offerings, regional presence, and other metrics is a precursor to the detailed profiles of these participants, including financial information, strategy overview, SWOT analysis, and market share, as well as analyst commentary.

To develop the market estimates for dairy alternatives, the overall utilization of dairy alternatives in volume terms as a proportion of finished end products was modeled for different regions and countries, which is followed by cross-referencing the production and revenue generated from the sales of dairy alternatives by key producers for top countries, globally. The prices of dairy alternatives have been obtained from manufacturers, distributors, and wholesalers for bulk quantities at a country level.